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[BUSINESS] · Indonesia · 2 sources

Indonesia free meals programme leaves kitchen investors in debt

Investors in Indonesia’s flagship free meals programme are facing significant financial distress as reimbursement terms are delayed or altered. Under President Prabowo Subianto’s initiative, which aims to provide meals to 83 million citizens, at least 400 investors have built more than 1,500 kitchens in remote areas. Many of these investors, such as those in Sulawesi, have utilized personal savings and loans from unlicensed lenders to fund the infrastructure.

The programme has faced various challenges, including governance issues, supply chain disruptions, mass food poisoning incidents, and financial cutbacks. These complications have left many kitchens idle and investors owing tens of millions of dollars.

In response to these issues, the government has implemented changes, including the dismissal of the National Nutrition Agency’s first head and the launch of corruption investigations. The agency’s new chief, Sudaryono, stated that the programme will now prioritize operations in remote areas and regions with high child stunting rates.

Entities

Indonesia · National Nutrition Agency · Prabowo Subianto · Sudaryono